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Service received from unregistered person

SKumar (Manager) (385 Points)

23 September 2017

I have received an Intra state supply of Accounting services (Rs 5000/-) from an Unregistered Dealer (URD) and payment was via NEFT.

No other goods or services were received from any URD on the same day.

Is this supply GST exempt? If yes, how do I account for it?
Do I need to issue a self Invoice?
In which all GST returns will this supply details need to be entered?

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10 Replies

Asit Adhikari (Assistant Manager in Sales Tax Dept.) (72 Points)
Replied 23 September 2017

According to me u have received an professional service from an unregistered party so u have to pay under rever charge basis

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RAMESH KUMAR SINGLA (PROFESSIONAL) (1777 Points)
Replied 23 September 2017

The receipt of services FROM unregistered supplier, valued upto Rs.5000/- is exempt from GST. Therefore, you need not pay any tax under reverse charge. However, in case you have purchased goods/services from some other supplier and the total value exceeds Rs. 5000/- (including the value of supplies from the first supplier) on a day,then the exemption is not applicable and you would be required to pay GST under reverse charge mechanism on the whole value and take credit of the same.

RAJA P M ("Do the Right Thing...!!!") (127911 Points)
Replied 23 September 2017

1. It's not exempted. The Accounting services is Taxable. Also your one day expenses exeed Rs. 1 + that 5000. RCM ll atracted.

2. The self invoice is not Issued purpose. It's only for your accounting Purpose. You can get Sign in A voucher mode or Banking Transactions..

3. In GSTR 3B "3.1 (d) and GSTR 2 "4B"

SKumar (Manager) (385 Points)
Replied 23 September 2017

Sir, thank you for confirming that this supply is exempt.

I don't have an Invoice from the URD.

a) How to account this supply? Do we raise self invoice?

b) Does this supply need to be accounted in any GST Returns? If yes please specify the Return name & Tile Heading.

SKumar (Manager) (385 Points)
Replied 23 September 2017

Raja Sir,

Thank you for your reply. I was replying to Mr Singla as your reply got posted.

You have correctly pointed out that Supply of Accounting Services is taxable.

Am a little confused.

I understand limit for Local URD purchases was "upto Rs 5000" per day. So I have not breached this limit for RCM.

Even if I purchased from URD , stationery or any goods for sale, within this Rs 5000 per day limit, they must escape RCM, even if they are taxable supplies.

So no tax would be paid by me on this transaction?

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RAJA P M ("Do the Right Thing...!!!") (127911 Points)
Replied 23 September 2017

Originally posted by : SKumar
	Sir, thank you for confirming that this supply is exempt. I don't have an Invoice from the URD. a) How to account this supply? Do we raise self invoice? b) Does this supply need to be accounted in any GST Returns? If yes please specify the Return name & Tile Heading.